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As difficult as it is to think about your own passing, it’s important to make sure your loved ones will be provided for after you’re gone. This is why buying life insurance plays such a crucial role in preparing for the future. Unfortunately, many people are deterred from getting coverage because they’re overwhelmed by the shopping process. With so many options available, it can be challenging to compare policies and pricing. However, once you understand what insurers consider when calculating premiums, you will find it easier to secure the best rate possible. Here are a few factors that impact coverage costs.

What Affects Life Insurance Rates?

1. Age

This is one of the top considerations taken into account when determining life insurance premiums. The older you are, the higher risk you present to insurers. Thus, you can expect to pay more for a policy. The best rates are locked in when you’re young, as there’s less chance of developing a serious health problem. Age will also affect how much coverage you’re able to purchase.

2. Health

Healthy applicants are generally rewarded with lower premiums. To find out whether or not you’re in optimal health, insurance companies will carefully assess your weight, cholesterol, blood pressure, and previous medical history. They will also analyze your smoking and drinking habits, as this can increase your risk of certain illnesses and ailments.

3. Lifestyle

life insuranceInsurers often charge higher rates for those who engage in high-risk activities, such as skydiving, mountain climbing, and deep-sea diving. If you tend to seek out adventure in your spare time, it’s likely your life insurance premiums will reflect this. It also makes a difference how frequently you participate in these hobbies.

4. Occupation

What you do for a living is another factor that can have a considerable influence over how much you pay for life insurance. If you work in a profession known for being dangerous, such as law enforcement, construction, the military, or coal mining, you are automatically exposed to more hazards than an accountant or teacher. In turn, your policy premium will rise.

 

Life insurance quotes can vary significantly from one insurer to the next. To get a better idea of how you can keep coverage costs manageable, contact Advantage Insurers. As an independent agency, they can help you evaluate policies from several reputable companies to find the one that will most suitably fit your needs and budget. They have worked with numerous residents throughout Habersham and White County, GA, providing valuable advice on planning for the future. Call (706) 754-1590 to schedule an appointment, or visit them online to request a quote.

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